This invention relates to an automated accounting system, and more particularly, to providing an automated accounting system for an entity such as an individual or a business in which a plurality of data inputs are made to a file established for the entity, the data inputs including electronically recorded financial transactions made between the entity and other entities. Access is provided to the file for agents of the entity being served so that one of the agents can perform one or more activities related to the data inputs, such as entering, deleting, reviewing, adjusting and processing the data inputs.
There have been proposed a number of systems and methods in which financial and business information has been computerized. My U.S. Pat. No. 5,193,055 discloses an accounting system in which a standard category code listing is used to code money transfer instruments, such as checks, into a computer file. The information in that computer file is then used to generate various accounting reports. The standard category codes can be personalized in order to meet the particular needs of the user. For example, job numbers can be coded on the check to track income and expense for individual projects.
U.S. Pat. No. 5,220,501 discloses a method and system for remote delivery of retail banking services. A user can access an ATM (Automatic Teller Machine) from a dedicated remote data terminal in order to transfer funds from a bank account to a third party payee. A central computer receives instructions from the remote terminal and debits the user's bank account as well as distributing the funds to payees requested by the user. See also U.S. Pat. No. 5,202,826.
Despite the existence of these systems, no one has conceived a total accounting system in which users, such as businesses, individuals, merchants, financial institutions and other entities are connected into a network where financial transaction information is captured, analyzed, reviewed, adjusted and processed and then used to generate accounting statements.
As computer hardware technology becomes more advanced and less expensive, many if not most financial transactions will be electronically recorded. For example, if a customer purchases a building product, such as a window, from a building products dealer, that sale can be electronically recorded in a ledger in the building product dealer's computer. No one, however, has conceived of a system in which the user and the building product dealer are connected in a network such that the recorded financial transaction, along with all other financial transactions recorded in the network, could be used to generate accounting records useful to the members of the network.
The recorded financial transactions, in order to be useful to the multitude of different users in the network, must be accessible to various agents. There is a need therefore for agents, such as accountants, to have access to the recorded financial transactions before, during and after the financial transaction is made. In this way, electronically recorded financial transactions can be entered, deleted, reviewed, adjusted and/or processed in order to provide the proper input data for the system.
After the data has been entered and reviewed, it would be desirable for the user to be able to choose which services are required from the system. For example, an individual may only be interested in obtaining tax accounting services, whereas a business may need a more complete set of financial reports.
Finally, an effective system must have a funds transfer clearinghouse, such as that disclosed in U.S. Pat. Nos. 5,220,501 and 5,202,826.
What is needed, therefore, is a connected system (or network) of users, such as individuals, businesses, merchants, financial institutions and other entities, that can provide its users a method of automating the accounting of all financial transactions made by the user and other entities in the network.